Abstract

Abstract: Purpose - To examine the links and causal relations, examined at the level of specific dimensions rather than in the aggregate, between constructs in the path from service quality to customer loyalty, using data from the Greek insurance industry. Design/methodology/approach - A SERVQUAL type service-quality instrument is developed and used for data collection in Greek Insurance. Confirmatory and Exploratory Factor Analyses are used to determine the scale’s dimensionality. Path Analysis is utilized to examine a model linking Service Quality, Customer Satisfaction and Loyalty. Findings - SERVQUAL’s dimensionality is not confirmed. A bi-dimensional (Non-Tangibles, Tangibles) structure exists in Greek Insurance. "Tangibles" does not affect Customer Satisfaction while word-of-mouth is an antecedent of repurchasing intentions. Satisfaction does not directly influence the latter. Research limitations/implications - The extension of the model to include the cultural characteristics of individual customers will contribute towards understanding how culturally different customers perceive service quality and how they link this to satisfaction and loyalty. Practical implications - Insurers must focus on the Intangible rather on the Tangible side of service to keep their customers satisfied. They must direct their service mechanisms towards keeping their customers willing to engage in positive word-of-mouth communication rather than towards pressing for more immediate sales. Originality/value - This study is among the few exploring the service quality, satisfaction, and loyalty path, in an insurance setting, at the level of specific dimensions. It is the only paper drawing from Greek Insurance. As such, the paper is of both managerial and academic value.